Demand for Growthpoint Properties’ student accommodation, 92% occupied at the end of September, is rising as the 2024 academic year approaches.
“Compared with November 2022, we have signed more leases for the 2024 academic year, and we expect this trend to continue as we edge closer to the beginning of the academic year,” said Amogelang Mocumi, fund manager for student accommodation at Growthpoint Properties.
Growthpoint Student Accommodation Reit is SA’s first unlisted fund launched in December 2021 by Growthpoint Investment Partners, the co-investment business of JSE-listed real estate investment trust, Growthpoint Properties.
The fund, launched with R2bn in assets, intends to grow the business to R12bn with possibility of listing in seven years to create liquidity and attract more capital from institutional investors, investment holding companies and family offices.
Its portfolio of 7,157 beds will be boosted by two new developments, adding 1,610 beds due for completion in time for the 2024 academic year.
These include Fountains View in Pretoria, targeting Tshwane University of Technology students, and Horizon Heights in Johannesburg, positioned for University of Johannesburg students.
The fund has invested about R1.2bn of property development projects for the 2025 and 2026 academic years. It is developing Horizon Heights in Auckland Park and Fountains View in Pretoria, expected to increase the number of beds to 8,800. The developments will be completed in time for the 2024 academic year.
“We have commenced with the development of two more projects at a cost of R500m Wits University students, and will be completed in time of the 2025 academic year,” said Mocumi.
The projects include 33 Princess of Wales in Parktown, adjacent to the Wits Parktown campuses and comprising 495 beds. The Podium on De Korte Street in Braamfontein has 780 beds, and will complement the existing Apex Studios in Braamfontein.
These projects will contribute positively to the urban regeneration of their localities, said Mocumi.
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